I am Robert Gaskin with New Century Funding. I have over 25 years in the financial sales/mgmt arena and in particular, with business funding. My primary product is designed for businesses such as restaurant, retail, automotive repair, etc that has been open for at least 9 months, has gross sales of at least $250k p/yr and processes at least $5,000 p/mo in credit card sales. Call me anytime to discuss how we can be of service to you. Thanks, Robert Gaskin 1-800-894-0341

Ralph...I don't think it's any secret that noooobody is lending right now, even on hard assets. Not only that, but in my past experience of turning companies around lenders won't touch a company that is going under. It's all going to be up to you and your reputation...in turnaround situations, the only funding you'll find is from vendors and you have to show them a plan that shows in great detail how it's to their advantage to continue shipping a very past-due account. I had a repayment plan that I used with each of the companies I turned around. The key is to get the 2 or 3 biggest creditors to sign on...then using the leverage of their names and reputations to get the rest to sign on. One thing you learn as you get into it is that every vendor in an industry knows every other vendor and they talk, so when you get Joe at ABC company to sign onto the plan and you use his name the other will call him to see how comfortable he is with the deal. Once you've done a couple within a given industry, it almost becomes automatic. In fact, it's these guys that keep tossing your name out when they have another customer in trouble...before long, you're turning deals down because you simply don't have the time. It's a great job that offers a lot of pride but requires a lot of energy.Good luckDenny

Leaving Denny's reoccurring negative comments aside, Lenders are still in the business to lend, banks are still looking for deals. Everyone participating on the commercial finance side are working together trying to help small businesses. I speak with the banking community daily and these people come to work everyday same as everyone else.

Granted there are companies out there that largely through mis-management have put their businesses at risk. In this new era of responsibility some are going to loose their company. But the name of the game is having a good solid business model and focused new business development (sales).

Your position as consultant to these sorts of companies is viable and needed. Let me know if I can help to advise you on structuring a turnaround and turning you onto some sources of capital.

My company is Creative Capital Associates, Inc. we provide receivable factoring services nationwide. For over a decade our clients have been able to continue their growth through the access to working capital.

Gary, my comments weren't negative, they were simply realistic. We both know that unless you're in the clothing business where factoring got it's start, it's considered the lender of last resort and sends a signal to your customers your weak financial position.

It's been years since anyone's approached me to factor my receivable but when I looked it, it was like payday loans for businesses. They only wanted to factor the prime accounts and at an outragous interest rate, or discount as they wanted to call it...something like 14%/month as I recall...might be wrong on that. But, unless I have the IRS ready to padlock my doors, why would I sell my invoices that I know I'm going to be paid on-time for at a discount. If I was going to factor any, it would be the slow-pays, but the factoring companies don't want those.

Factoring aside, my comments about the current lending environment are dead on accurate. Try funding an equipment purchase through GE Capital, the largest equipment lender in the country...nada...they don't have the money to lend...hell..General Motors, and Chrysler can't borrow a dime and they're asset heavy but cash poor.

I won't begrudge you for trying to make a living, but don't try to make people believe that the credit markets are wide open, they are not.Take care...Denny

I can appreciate both of your positions. The reality is American business has moved from a traditional model with balance sheet rich self funded projects to a debt ladden faster growth model. We have become the newly married couple with too much credit card debt and now it has to be paid off. Everyday businesses are asking me where they can get more money. What I am coming to realize is more money is just creating more problems.

Businesses need to change from financing todays operations on future earnings and start living within their means. If that means slower growth, then that is the trade off for stability. Lenders need to realize that they led businesses down this path by making it easier to get money than it was to fix real problems. We all share the blame, lenders and business people and we all will have a part in taking on these challenges.

To overcome these challenges will take major belt tightening by business owners and they may even have to give up a few personal assets to help get their business back in balance. From the lending side lenders need to understand that they are going to have to be more flexible in their terms going forward if they want hope of being paid their full balance. The government needs to accept that just because a bank is willing to adjust terms of a loan to help the borrower if you force the bank to reserve heavily against that debt you are forcing them to pay a penalty for doing the right thing. Maybe just maybe the Fed could use some of that #350 billion to insure restructured small business loans or maybe that is too much commonsense for politicans to get their minds around.

Government rules are only part of the problem, I have watched business owners cling to a personal asset until it was too late to save the business or the personal asset. I have seen lenders that were presented a new payment plan only to reject it out of hand and then be forced to accept half that amount in a chapter 11 plan.

What I really do on a daily basis is try to get these two sides to see that they both have the same goal, a successful business that pays it's debts. I will give this advice to business owners, don't wait until you are on the verge of missing a payroll or tax payment before you talk with you lender and don't keep telling them everything is fine when it is not. A blindsided lender is not going to be a good partner. To lenders I would say that in my experience your collateral is worth far less than you are owed so you need to be willing to work with borrowers and think "outside the box" for answers.

Ralph...A very cogent post. I'm personally against debt financing and refuse to do it in my own business outside of internal financing, which I would be the first to admit has probably caused my company to be smaller than if I'd been willing to leverage everything.

I take a much simpler, pragmatic view. If I'm financing my inventory it can cause me to become sloppy in establishing the proper levels, and I'm adding that cost of financing to my direct cost of product thereby making me less competitive.

About the only thing I'll consider financing is a producing asset...an asset that produces revenue...not a company car, that only produces smog, but a new piece of equipment to add a new product to the line. Tradionally, I try to make sure I can pay off any new asset within 6-months...then, I'll loan the company the money to keep from stressing cashflow.

I know my methods are antiquated, but they work and keep my stress levels to a minimum. We're in a terrible economy and I'm not worried about having to lay people off, or paying off debt...for my company, it's just another year. Anytime I lecture, I try to get this message across...debt, is not your friend...now, all of a sudden, people are figuring that out, both in their personal lives and their business lives.I think your post was right on...Denny

Gary,I notice you didn't take any specific umbrage with my post mentioning the costs associated with factoring, or the weak position message it sends out, or the only wanting to take the AAA accounts.

As much as I'm loath to do it, I'm going to contact a factoring company or two and see what current conditions are...I don't want to give false impressions if the factoring market has changed and I wasn't aware of it. I'll let you know...Denny

Cost is a relative term in business as you know. If you have a contract that you cannot fulfill due to lack of funds the negative impact of failing is severe. Depending on the track record of the borrower, creditworthiness of the customers, and volume/commitment of the funding: we charge mid teens interest. Is this higher than Libor? yes, will it allow our clients to remain profitable and grow? yes as well. The days of factoring being the lender of last resort are history. When I consider a company for our portfolio if I see that we are in a good money going after bad situation, I will not bring them on. There are factors who do specialize in this business. It's a specialty and I can't speak to their practices or pricing.

Generally we will finance our clients invoicing. We do risk analysis and hope to spread the credit of some good accounts, not so good and marginal. We do not simply turn down anything that is not AAA as a rule. It is much more sophisticated than that and our clients rely on the access to capital based on a thorough knowledge of proper credit research.

Regarding current conditions in the factoring industry - we are in our zenith. Never before have I seen standard access to capital being withheld across the board. In my mind the factoring community has a responsibility in this market to keep small businesses from going under and helping them continue their growth until more favorable lending conditions return.

I hope this clarifies our misunderstanding.

Respectfully,

Gary

>Gary,>I notice you didn't take any specific umbrage with my post>mentioning the costs associated with factoring, or the weak>position message it sends out, or the only wanting to take the>AAA accounts.>>As much as I'm loath to do it, I'm going to contact a>factoring company or two and see what current conditions>are...I don't want to give false impressions if the factoring>market has changed and I wasn't aware of it. I'll let you>know...>Denny

ralph please contact me, i have been a coach in the financing industry for 15+ years and would love to help you get deals done, when you want to get clients funded you need to get creative and that is what i have learned how to do. I have access to all the sources you are looking for as well, I can teach you how to help busineses without creating debt for them.

Hi, I am new in this forum. I am Hengki from Indonesia. Am I eligible to post anything especially about funding? Because there are so many investment opportunities here but no financing available especially for a start up business. Thank you.

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